Division of Relationship Property

What is the law regarding how property should be divided?

The Property (Relationships) Act 1976 (PRA), governs how property is to be divided once a relationship has ended.

In general, if a marriage, civil union or de facto relationship lasts more than three years, all relationship property will be divided equally unless the Family Court considers there are extraordinary circumstances that make equal sharing repugnant to justice.

Section 15 of the PRA allows the Courts to compensate for economic disparity between the two parties.

Economic Disparity Claims

Economic disparity is when the income and living standards of one partner after separation, is much higher than the other, as a result of the division of functions that existed within the partnership. For example, if one partner had made sacrifices to their career by staying home to raise children or run the household, so the other partner could further their career.

Section 15 of the PRA gives the Court discretion to order an unequal division of relationship property, to compensate for this imbalance.

Our team is experienced in this area, acting for both parties. Please call us to make an appointment and we can advise you how to proceed.

How is relationship property usually settled?

The easiest way for relationship property to be settled is for the parties to come to an agreement themselves. In this instance the parties will engage different lawyers, who will offer independent advice, then draw up the agreement and arrange for the parties to sign it.

When the parties are unable to agree, then settlement will be attempted through correspondence or a round table meeting between the parties and their lawyers.

If an agreement still has not been reached, then one or more of the parties can apply to the Family Court for assistance. The Family Court has a process for the settling of disputes which encourages settlement without progressing to a full Family Court defended hearing. The full process is outlined in our Family Court section. It includes free counselling for the parties, and mediation with judges.

Almost all cases are settled through negotiation and mediation, as the presumption rule of a 50/50 split, usually encourages settlement. Only around one percent of cases will progress to a defended Family Court hearing. We encourage our clients to settle out of Court where possible.

How can we help?

Family law, including relationship property, is our specialist area and we are committed to obtaining the best possible outcome for our clients. This involves careful analysis of our client’s situation and objectives early on in the process. A clear plan of action and a carefully reasoned approach the beginning, often reduces our client’s overall costs and avoids unnecessary argument.

Our extensive advocacy experience and direct approach will benefit you in mediations and negotiations with the other party.

If your case does progress to a defended hearing in the Family Court, you will need an experienced litigator to plead your case. This is one of our specialist areas and we have experience in a range of complex situations. We have access to top experts who have a proven record of providing opinions which are respected in negotiations and in the Family Court.

Please call us to arrange an appointment. In our first meeting with you, we will explain the law, your options and the outcome you can reasonably expect. We will also advise a fixed fee for your case and the likely time it will take to settle.

How can I protect my assets prior to settlement?

Steps may have to be taken to preserve property urgently, such as injunctions to stop someone selling an asset, issuing a caveat over an asset or freezing an asset. We have expertise in arranging these High Court actions at short notice.